• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
japan

Japan to Focus Cryptocurrency Regulation on Speculative Investments

Ricardo Esteves by Ricardo Esteves
5 years ago
in Uncategorized
Reading Time: 2 mins read
Advertisement

The Financial Services Agency, the government agency that oversees banking, securities, and exchange services in Japan, plans to set up stricter requirements on cryptocurrencies and its use for speculative purposes.

Japan Regulator May Impose Cap on Cryptocurrency Trading Leverage

Bitcoin and other cryptocurrencies have mainly become tools for speculative investment in recent months. Recently, a DEA agent explained that around 90% of all Bitcoin moving between wallets used to be associated with crimes. The number has fallen dramatically to 10% with the rise of the virtual currency market, particularly in late 2017, as investors and traders entered the space with fear of missing out on the new and trendy asset class.

The five largest cryptocurrencies were responsible for a trading volume of ¥69 trillion in fiscal 2017 in Japan, with users reaching 3.5 million. Instead of using virtual coins for payments, the Japanese mostly traded in search of profit, a senior official of a major cryptocurrency exchange told Japan Times.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

“Young users who had previously no connection (with cryptocurrencies) have increased at a breathless pace.”

Margin trading is behind the cryptocurrency trading explosion in Japan as investors are offered leverage by online trading companies in order to seek higher exposure while having little capital. The virtual currency market has no leverage cap, unlike the Forex market which is limited to 25:1 leverage in Japan. This is due to being outside the Financial Instruments and Exchange Act. The market is also exempt from regulatory requirements covering anti-insider trading and other issues the financial services industry is subject to.

What the FSA now recognizes is that they mostly focused on payments and remittances for their cryptocurrency regulation via the revised the Payment Services Act in April 2017. These security measures for the cryptocurrency space don’t cover the use of virtual currencies as speculative investment assets.

Japan FSA Concerned Over Future Cryptocurrency Exchange Hacks

Contrary to the FSA’s expectations, the Japanese people, as well as the rest of the world, found the cryptocurrency market as an investment opportunity, not only by simply holding Bitcoin et al. but also through investing in initial coin offerings that have become popular since 2017. The Coincheck hack in January 2018 also exposed the vulnerabilities of exchange operators in Japan. Instead of focusing on payments, regulation must be set up to protect investors in the cryptocurrency space, an expert told Japan Times.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

“Virtual currencies should be positioned as assets for investment, while a legal system to protect investors needs to be established as a matter of urgency.”

The Financial Services Agency set up a working group in April 2018 to make corrections to the current regulation in order to focus on the actual practice of the market, including margin trading and insider trading.

 

Image from Shutterstock
Tags: CoincheckFinancial Services AgencyfsaInsider TradingjapanleverageMargin tradingregulation
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Ricardo Esteves

Ricardo Esteves

Related Posts

Bitcoin

Bitcoin Price Action Mirrors Q1 2021, Volatility Ahead?

9 hours ago
XRP

XRP Might Target $0.50 If It Continues To Trade Above This Level

10 hours ago
Ethereum (ETH) number of addresses surges

Number Of Ethereum Addresses In Profit Hits 10-Month High As ETH Continues Rally

11 hours ago
Bitcoin

Bitcoin Coinbase Premium Continues To Decline, Buying Pressure Ending?

12 hours ago
litecoin rally

Why Litecoin Could Be Gearing Up For Its Greatest Rally Since 2017

12 hours ago
ARK Invest Buys $18M Worth of Coinbase Shares As The Price Tumbles

ARK Invest Buys $18M Worth of Coinbase Shares As The Price Tumbles

13 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Whatever Happened To Bitcoin Cash? – Learn Why Avorak AI and Other AI Crypto Are Surging

March 24, 2023

Avalanche Price Prediction: are AVAX and TOADS ready to 10X?

March 24, 2023

Litecoin (LTC) and Dogecoin (DOGE) Drowning in Controversy While TMS Network (TMSN) Steals the Show

March 24, 2023

The Best Altcoins To Get In Early 2023: TMS Network (TMSN), TRON (TRX) and Mask Network (MASK)

March 24, 2023

The Web3.Conference will gather Web3 builders & creators this May in Amsterdam

March 24, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.